After hours trading
What are exchanges after normal hours?
After-hours trading refers to trading on the stock markets after the market closes at 16:00 in the United States, thus offering people an option to trade the securities once the market closes and there are no further movements. price.
People can trade shares even if the market closes during the session after normal hours, responding to the latest stock news and events and taking advantage before the market reopens the next day.
How does it work?
US stock markets begin at 9 a.m. and close at 4 p.m. This session runs from 4 pm to 8 pm, during which investors can trade shares with no impact on prices.
It is more popular with wealthy individuals and institutions such as mutual funds that can take risks.
More common among risky investors who want to take high risks on their investments to get higher returns
Certain rules and regulations apply to after-hours trading compared to normal trading hours regarding the type of investment. Accepted orders, presence or absence of manufacturers market.
Advantage
Some of the benefits are mentioned below:
- Convenience: Provides convenience to investors who have missed an opportunity to trade during normal market hours and wish to execute a trade after This gives the investor time to trade his securities even after normal market hours, thus providing comfort and convenience.
- News and Events: You can take advantage of the latest news and events affecting stock prices and take the appropriate positions in the secondary market calendar session to profit from the news.
- Technical Analysis: Once, you can also analyze and react to the stock chart before the market opens at 9:00 am tomorrow
Disadvantage
- You only have access to buy, sell or limit Then your order will be partially executed or not executed at all.
- You cannot get the best possible price for the stock because due to the low volume, there would be high price fluctuations and the right price may not be available which is more suitable for the investor.
Conclusion
So from the above information, today we learned the basics of after-hours trading, how it works and its pros and cons. While this is an interesting concept, it comes with various rules and regulations that must be followed before trading.
